The cost of high risk loans (high LTV's or low FICO scores) is about to rise signifianctly. Huge jump.
This just came in from a major lender. (The 2% increase is to price, not rate).
2% Rate Adjuster for Seven Loan Categories Requiring Any Mortgage Insurance
Audience: Wholesale Sales and Operations
From: IL Project Management Office
System: LPS/MEX
Effective: Monday, June 2
Client Communication: Newsflash attached
Due to dramatic changes in mortgage insurance (MI) availability, Wholesale Lending will implement a 2% rate adjuster on loans (conventional conforming and non-conforming) with the seven specific categories defined below that require lender-paid or borrower-paid mortgage insurance.
· The 2% rate adjuster will be applied to impacted loans locked and/or relocked on or after Monday, June 2.
· Loans in the categories defined below will need to be funded prior to July 31, 2008. Any commitment that has not funded on or prior to this date cannot be honored due to unavailability of MI coverage.
· Lock extensions and/or relocks will be allowed, but expiration dates cannot go beyond July 31, 2008.
Audience: Wholesale Sales and Operations
From: IL Project Management Office
System: LPS/MEX
Effective: Monday, June 2
Client Communication: Newsflash attached
Due to dramatic changes in mortgage insurance (MI) availability, Wholesale Lending will implement a 2% rate adjuster on loans (conventional conforming and non-conforming) with the seven specific categories defined below that require lender-paid or borrower-paid mortgage insurance.
· The 2% rate adjuster will be applied to impacted loans locked and/or relocked on or after Monday, June 2.
· Loans in the categories defined below will need to be funded prior to July 31, 2008. Any commitment that has not funded on or prior to this date cannot be honored due to unavailability of MI coverage.
· Lock extensions and/or relocks will be allowed, but expiration dates cannot go beyond July 31, 2008.
No comments:
Post a Comment